National Park Service awards $71.5M contract for Olympic National Park water facilities construction

Contract Overview

Contract Amount: $71,451,089 ($71.5M)

Contractor: Watts-Delhur, a JV

Awarding Agency: Department of the Interior

Start Date: 2007-12-12

End Date: 2011-02-26

Contract Duration: 1,172 days

Daily Burn Rate: $61.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ELWHA WATER FACILITIES, OLYMPIC NATIONAL PARK, CLALLAM COUNTY, WASHINGTON

Place of Performance

Location: PORT ANGELES, CLALLAM County, WASHINGTON, 98362

State: Washington Government Spending

Plain-Language Summary

Department of the Interior obligated $71.5 million to WATTS-DELHUR, A JV for work described as: ELWHA WATER FACILITIES, OLYMPIC NATIONAL PARK, CLALLAM COUNTY, WASHINGTON Key points: 1. Contract awarded to WATTS-DELHUR, A JV for water and sewer line construction. 2. Project duration was 1172 days, indicating a significant undertaking. 3. The contract was awarded under full and open competition. 4. The base contract value was approximately $61M, with significant modifications. 5. This project addresses critical infrastructure needs within a national park. 6. The firm fixed price contract type suggests a defined scope and cost control.

Value Assessment

Rating: good

The final award amount of $71.5M significantly exceeded the initial base contract value of $60.9M, suggesting substantial scope changes or unforeseen issues during the project. While the firm fixed price contract aims for cost certainty, the increase warrants scrutiny. Benchmarking against similar large-scale water infrastructure projects in federal or municipal settings would provide a clearer picture of value for money, but the complexity of park infrastructure can lead to unique cost drivers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple interested parties had the opportunity to bid. With 3 bids received, the level of competition appears moderate for a project of this scale. A higher number of bidders might typically drive prices down further, but the specific nature of park infrastructure and specialized requirements could limit the pool of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages competitive pricing and a wider selection of qualified contractors, potentially leading to better value.

Public Impact

Benefits park visitors and staff by ensuring reliable water and sewer services. Supports the operational integrity of Olympic National Park. Impacts the local workforce in Clallam County, Washington, through construction jobs. Ensures compliance with environmental and public health standards for water infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant increase from base contract value to final award suggests potential cost overruns or scope creep.
The long duration of the contract (1172 days) could indicate project complexities or delays.
Limited information on specific performance metrics makes it difficult to assess overall project success beyond completion.

Positive Signals

Awarded through full and open competition, promoting a fair bidding process.
Firm fixed price contract type provides cost certainty for the government.
Addresses essential infrastructure needs for a major national park.

Sector Analysis

This contract falls within the Construction sector, specifically focusing on heavy civil construction related to water and sewer systems. The market for such infrastructure projects is substantial, driven by ongoing needs for maintenance, upgrades, and new installations across federal lands, municipalities, and private entities. Comparable spending benchmarks would typically involve large-scale utility projects, though the unique environmental and logistical challenges of a national park setting can influence costs.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a joint venture, potentially comprising larger entities, and the direct impact on the small business ecosystem may be limited unless they are engaged as subcontractors by the prime awardee.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Park Service contracting officers and project managers. The firm fixed price nature of the contract implies a focus on adherence to the agreed-upon scope and cost. Transparency is generally facilitated through contract award databases like FPDS, but detailed performance reports and specific oversight actions are not publicly detailed here. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

National Park Service Infrastructure Projects
Federal Water and Sewer Construction Contracts
Olympic National Park Operations
Department of the Interior Capital Investments

Risk Flags

Potential cost growth beyond initial estimates.
Contract duration suggests complexity or potential for delays.
Limited public data on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $71.5 million to WATTS-DELHUR, A JV. ELWHA WATER FACILITIES, OLYMPIC NATIONAL PARK, CLALLAM COUNTY, WASHINGTON

Who is the contractor on this award?

The obligated recipient is WATTS-DELHUR, A JV.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $71.5 million.

What is the period of performance?

Start: 2007-12-12. End: 2011-02-26.

What was the primary reason for the significant increase from the base contract value ($60.9M) to the final award amount ($71.5M)?

The substantial increase from the base contract value to the final award amount suggests that the project likely experienced significant modifications or encountered unforeseen circumstances during its execution. Common reasons for such increases in large construction projects include scope changes requested by the government, discovery of unexpected site conditions (e.g., geological issues, environmental remediation needs), escalation of material or labor costs beyond initial projections, or the addition of new requirements not detailed in the original solicitation. Without access to contract modification details or project close-out reports, the precise drivers remain speculative, but the nearly 17% increase warrants a thorough review of the contract's history and justification for these changes.

How does the per-unit cost of this project compare to similar water and sewer line construction projects in other federal or municipal contexts?

Direct per-unit cost comparison is challenging without detailed breakdowns of the work performed (e.g., cost per linear foot of pipe installed, cost per manhole constructed, cost per pump station component). The provided data aggregates the total cost for a complex project involving multiple water and sewer lines within a national park. Factors unique to Olympic National Park, such as remote access, environmental sensitivities, specialized construction techniques required to minimize ecological impact, and potentially higher labor costs due to location, could significantly influence per-unit costs compared to more standard urban or suburban projects. A detailed cost-benefit analysis would require granular data on the scope and specific challenges encountered.

What were the key performance indicators (KPIs) used to evaluate the success of WATTS-DELHUR, A JV on this contract?

The provided data does not specify the key performance indicators (KPIs) used to evaluate the contractor's success. Typically, for construction contracts, KPIs would include adherence to schedule, quality of workmanship (meeting specifications and standards), safety performance (incident rates), budget management (within the contracted price, accounting for approved modifications), and compliance with environmental regulations. The final award amount and duration provide some context, but a comprehensive assessment of performance would require access to inspection reports, progress reviews, and final acceptance documentation from the National Park Service.

Were there any significant delays or challenges encountered during the 1172-day contract period, and how were they managed?

The contract duration of 1172 days (approximately 3.2 years) suggests a project of considerable complexity and likely encountered challenges. While the data doesn't detail specific delays, common issues in such projects include adverse weather, unexpected subsurface conditions (rock, groundwater), environmental permit issues, supply chain disruptions, or coordination problems with other park activities. The management of these challenges would typically involve formal contract modifications to adjust timelines or costs, detailed documentation of the issues and resolutions, and close collaboration between the contractor and the contracting officer's representative (COR) to mitigate impacts and keep the project moving forward as efficiently as possible.

What is the historical spending pattern for water and sewer infrastructure within Olympic National Park or similar national parks?

This specific contract represents a significant investment in water and sewer infrastructure for Olympic National Park. Historical spending patterns for such infrastructure within national parks can vary widely depending on the park's age, size, existing infrastructure condition, and funding priorities. Large-scale projects like this are often undertaken to address deferred maintenance or upgrade aging systems. To establish a pattern, one would need to analyze multi-year budgets and contract awards for infrastructure maintenance and capital improvements across the National Park Service, looking for trends in the types of projects funded, average project costs, and the frequency of major utility system overhauls in comparable parks.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: INPN8000070912

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 735 BISHOP ST STE 230, HONOLULU, HI, 01

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $71,451,089

Exercised Options: $71,451,089

Current Obligation: $71,451,089

Timeline